Artificial intelligence pays off when businesses go all in

About 92% of large companies are achieving returns on their investments in artificial intelligence, and the same percentage are increasing their AI investments. But what does it take for startups and early-stage companies to get to this point? "AI utilization is tied to startups' products and services. It's more directly relevant," he said. In a new paper, Choi and his co-authors find that firms need to be ready to make a significant investment in AI to see any gains, because limited AI adoption doesn't contribute to revenue growth. Only when firms increase their intensity of AI adoption to at least 25% -- meaning that they are using a quarter of the AI tools currently available to them -- do growth rates pick up and investments in AI start to pay off.